Germany seeks cheaper housing with new 'Gebäudetyp E' building standard

A new analysis shows that despite rising rents, the average German dwelling has grown to 94 m², 2.4 m² larger than a decade ago. High construction costs, driven by strict sound‑, barrier‑, and thermal‑insulation standards, keep housing prices elevated. Two building‑research institutes propose cutting these requirements: reducing sound‑protection thickness, easing barrier‑free rules and lowering insulation levels could bring average building costs down from €5,500 to €4,500 per square metre.

The ruling coalition plans to codify a simplified construction type called "Gebäudetyp E" with thinner concrete slabs and relaxed standards. Draft legislation is expected in the coming months. The SPD also urges the creation of a federal housing corporation to deliver affordable units, while the Union shows limited enthusiasm. Building permits have risen sharply, but approvals do not always translate into completed projects.